Audit 14359

FY End
2023-03-31
Total Expended
$839,019
Findings
2
Programs
2
Organization: East Columbia Apartments (MS)
Year: 2023 Accepted: 2024-01-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
10681 2023-001 Significant Deficiency - L
587123 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $713,034 Yes 1
14.157 Supportive Housing for the Elderly $125,985 - 0

Contacts

Name Title Type
XC2KJ7TKJ4P4 Evelyn Bishop Auditee
6017418350 Joey Fletcher Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee used the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Project and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project.
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee used the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Project has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE C - U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee used the de minimis cost rate. The Project has received a U. S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The direct loan balance at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the direct loan outstanding as of March 31, 2023, consists of 14.157 and balance of $0.00.

Finding Details

Finding 2023-001: Section 8 Housing Assistance Payments (CFDA #14.195) Type of Finding: Significant Deficiency / Noncompliance Repeat Finding: Finding is not a repeat finding. Criteria: Under the Uniform Guidance, the Project is required to submit its audited statements within nine months of year-end. Condition: The Project did not submit its audited financial statements within the time frame. Cause: The Project's HUD mortgage was paid off during the fiscal year and it was anticipated that the Project would be below the $750,000 threshold. Effect or Potential Effect: The late submission could put the Project in noncompliance with HUD and decrease future funding from HUD. Perspective Information: The Project failed to submit its annual audit within the prescribed timeframe. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should submit its annual financial statement audit through the clearinghouse and ensure that it remains in compliance in future years. Views of Responsible Officials: Management concurs with the finding. Management will submit its audited financial statements through the clearinghouse immediately.
Finding 2023-001: Section 8 Housing Assistance Payments (CFDA #14.195) Type of Finding: Significant Deficiency / Noncompliance Repeat Finding: Finding is not a repeat finding. Criteria: Under the Uniform Guidance, the Project is required to submit its audited statements within nine months of year-end. Condition: The Project did not submit its audited financial statements within the time frame. Cause: The Project's HUD mortgage was paid off during the fiscal year and it was anticipated that the Project would be below the $750,000 threshold. Effect or Potential Effect: The late submission could put the Project in noncompliance with HUD and decrease future funding from HUD. Perspective Information: The Project failed to submit its annual audit within the prescribed timeframe. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should submit its annual financial statement audit through the clearinghouse and ensure that it remains in compliance in future years. Views of Responsible Officials: Management concurs with the finding. Management will submit its audited financial statements through the clearinghouse immediately.